Corn prices growing in Ukrainian ports despite expected decline

Source

APK-Inform

4999

This week, the prices of corn continue growing in deep-sea ports of Ukraine, APK-Inform says.

“Despite the expected decline of the prices, higher prices of Ukrainian corn compared to other origins on the external market and low demand, the prices of the grain continue growing. At the same time, the unclear prospects of South American corn crop, downward revision of corn production forecast in Brazil and weather risks in US corn belt limited the growth of the Ukrainian prices. However, Ukrainian farmers remain to be reserved sellers and the competition from processors is high. Generally, the corn segment is the most price volatile affected by different factors. The competition on the global market will be tough at the end of the season”, - the head of the local markets department of APK-Inform, Anna Tanskaya commented.

As of April 21, the bid prices of corn amounted to 8050-8300 UAH/t and 252-260 USD/t CPT-port. Few traders are ready to buy grain at the maximum prices.

“Now, more and more experts agree that the high prices and significant volatility are the next reality for the next several seasons. Therefore, the future of forward contracts is quite interesting. Despite the wave of defaults observed this season, the number of signed forward contracts is even higher this year amid currently attractive prices for farmers”, - she emphasized.
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